Solution to under-funded pensions

The Illinois unfunded pension liability continues to grow. It is a very serious problem that our elected officials fail to address. The underfunded pension liability is estimated to be $78 billion, which is a conservative estimate.

Our legislators are discussing ways to borrow money to fund current liabilities. I disagree with this approach since borrowing money effectively passes along the pension cost to all Illinois taxpayers and most do not benefit from any type of pension plan.

I would like to suggest a “Pension Benefit Preservation Fund” be established to address the issue of underfunded state pensions. Contributions to the fund would come from the current state pensioners and the funds collected would be dedicated to properly funding the pension programs. I suggest establishing an exemption of $30,000. Any amount above the $30,000 to $100,000 would have 3 percent deducted to contribute to the PBP Fund. Anything from $101,000 to $150,000 would contribute 5 percent of excess of $30,000 exemption; anything from $151,000 to $250,000 would contribute 7 percent of excess of $30,000 exemption; and anything in excess of $251,000 would contribute 10 percent of excess of $30,000 exemption.

I believe this would be fair in dealing with the problem since those contributing would directly benefit.

Ron Fuchs

St. Charles